Garena could fire Sea towards US$1t market cap dream, but Shopee growth plans weigh on near-term sentiment

[SINGAPORE] Plans by Sea’s e-commerce arm Shopee to focus on growth – at the expense of margins – could weigh on the Internet giant’s near-term prospects, analysts say.

But developments at gaming arm Garena and digital financial services arm Monee could lift Sea to a good third-quarter showing – and another step towards founder Forrest Li’s rallying call for the group to hit US$1 trillion in market capitalisation.

The way CGS International (CGSI) analyst Jacquelyn Yow sees it, Shopee has entered “a reinvestment phase for growth, specifically in logistics”.